GURU SPEAK

R Sreesankar, Head (Research), IL&FS Investmart
The international market is definitely having an effect on the Indian market. Also some of the guidance given by corporate India has not been up to the expectation of the market. As a result you see irrational activities in the market. I do not see a sustained upward movement soon. You must understand here that all emerging markets like Korea, Taiwan and Brazil have seen a movement in the average of 13 per cent recently. Therefore, the movement in the domestic market are a function of what is happening abroad. Having said that, I can only say that volatility will continue and people should be more cautious. I don’t see any lack of liquidity in the market though.

Krishnamurthy Vijayan, CEO, JM Mutual Fund
The run-up was very sharp since December and January. A feeling that the market was a little over-valued was creeping in., people were a little nervous about the high valuations. So the fall was actually healthy as the valuation can be set right now. I have been telling all investors to buy. This is the time to buy. The domestic funds are buying heavily. For the fall of the market, I will not blame the tech results solely. There are three factors that worked to pull the market down, the international market, the oil prices and the result season here. I expect the market to continue to be volatile. In fact, investors will have to wait till the monsoon season to see some calm in the market. Monsoon has a major impact on the market, and till the time that impact is factored in, markets will remain volatile.

Alok Vajpeyi, Vice-Chairman and MD, Dawnay Day AV Financial Services
The recent fall in the equity market can be attributed to the following factors: overall weakness in the global markets, which in turn was triggered off by a slump in technology stocks, rising interest rates, liquidity overhang in the domestic market and some earnings disappointment early in the results season. I expect the bearish trend in the market to continue for the next couple of months or so, following which the compelling valuations and the strong fundamentals in terms of economic growth and corporate earnings growth across sectors would help the market to grow in the long term.